7 tips to help you make the most of your finances
Get Rich / / December 20, 2019
personal finance management seems complicated science, not mere mortals. But there are tips to help protect yourself from unnecessary losses and to strengthen its financial position.
1. Be ready for anything
Financial difficulties can happen to anyone, so be prepared for the worst. Your deal may fall through at the last moment. Your investments can not be recouped.
Therefore it is very important to properly prepare for such eventualities. Insure your property. Protect your investment. Develop a contingency plan. Then the financial problems do not catch you by surprise.
2. Do not hesitate to ask questions
Often people do not want to appear ignorant and try not to ask a lot of questions. But if there is something you do not understand the financial product or service that you offer, do not hesitate to ask.
Before you part with your money, you have to understand all the nuances. By asking questions, you will protect yourself from losses.
3. Be careful with credit cards
Credit cards seem very convenient. In addition, it is usually tempting offer bonuses and keshbek program. But they can give you a lot of problems and lead to debts. If you still decide to open such a card, be sure to completely extinguish every month your credit. If you do not, credit cards are not for you.
Think about it: the interest rate on a credit card certainly higher than the interest on your investment. So credit card debt can cause significant losses.
4. At first, pay yourself
The best thing about your financial interests can only take care of yourself. Therefore, to pay himself - is more postpone their retirement. Do not neglect it.
The same applies to the payment of debts. To regularly pay the required amount to the debt did not accumulate.
5. Do not stop learning
Education does not end when we graduate from school or university. Good investors improve their skills on a daily basis.
Do not assume that you already know everything. Read. Learn from their leaders and their subordinates. Listen carefully to the other. The less you say yourself, the better.
6. Debt - this is not always a bad thing
We tend to think that the debts - is a bad thing, and should be avoided. But it is not always the case. Debts are good and bad. To the poor include debts that accumulated due to reckless financial decisions. A good may even generate revenue. For example, among the first - credit card debt, and among the second - mortgage on the property, ensuring the flow of funds.
When you need to decide whether or not to take anything on credit, think about how it will affect your finances. Will income after tax is higher than the cost of paying out interest? When answering this question, decide whether to go on risk.
7. When you are just starting out, it does not matter how much money you have
When it comes to financial success, It does not really matter where you are, where studied or with someone familiar. Of course, communication can help, but you can gain financial independence and without them.
If you work hard, it is reasonable to invest and spend money, it is possible to secure a good financial position.
Late start does not hurt financial success. Ray Kroc bought the "McDonald's", when he was 52. Vera Wang has become a fashion designer just 40. Samuel L. Jackson became really famous only 43.
So focus on what you're aiming for and not on how to get you started. It is important to your future, not the past.